Category Archives: Crypto

Only 14% Americans Hold Cryptocurrency

What Is Staking in Cryptocurrency?

Many people may consider staking an easier alternative to mining—one that is less resource-intensive. It can be defined as holding funds in your cryptocurrency wallet in order to support the operations and security of a blockchain network. In simple terms, staking is holding cryptocurrencies so you can earn rewards.

In many cases, you can stake your coins from your cryptocurrency wallet directly. Alternatively, you can take advantage of the staking services offered by exchanges. With Binance Staking, for instance, you can earn rewards by simply having your crypto-coins on the exchange.

You will need to first understand Proof of Stake (PoS) and how it works if you want to better understand staking. Proof of Stake is a consensus mechanism that lets blockchains operate in a more energy-efficient manner while maintaining some degree of decentralization. 

Take a closer look.

What Is PoS (Proof of Stake)?

You might already know about PoW (Proof of Work) if you know about Bitcoin and how it works. It is the process through which transactions are gathered into blocks. These blocks are then connected to make the blockchain. Miners typically compete to find a solution for a difficult mathematical puzzle. The miner that solves it first gets to add the next blockchain block. 

PoW is a robust mechanism but it involves too much arbitrary computation. The only purpose of the puzzle that miners solve is to ensure the network is secure. It has no other purpose. Some people could argue that this alone justifies the excess of computation. 

But someone else may wonder: is the high computational cost really necessary in maintaining decentralized consensus? 

That is where Proof of Stake comes in. Participants can hold their “stake” or coins. The protocol will then randomly assign one participant the right to add the next block. The amount of coins one has determines the probability of being picked. So if one has more coins, their chances are higher. 

Unlike with PoW, participants are not chosen depending on their ability to find the solution to a complex challenge. It will depend on the amount of staking coins one is holding.

Some may say that using staking to produce blocks may facilitate a high degree of scalability. The Ethereum network is set to shift to PoS from PoW, this being one of the reasons. 

Who Came Up with Proof of Stake?

PoS may have first appeared on Scott Nadal and Sunny King’s Peercoin 2021 paper. It was described as a peer-to-peer crypto design deduced from Bitcoin. 

The Peercoin network, initially, began with a PoS/PoW hybrid mechanism. Proof of Work was for minting the initial supply. The network, however, didn’t need it for long-term sustainability. So its importance was gradually reduced. The security of the network actually relied mainly on PoS. 

Delegated Proof of Stake: What Is It?

Delegated Proof of Stake (DPoS) is an alternative version developed by Daniel Larimer in 2014. At first, it was a section of BitShares blockchain but the model was adopted by other networks. They include EOS and Steem, also creations of Larimer. 

With DPoS, coin balances are committed as votes and the number of coins is proportional to the voting power. Delegates are elected using these votes. They manage the blockchain, ensuring consensus and security on behalf of the voters. The elected delegates receive staking rewards and, in turn, distribute these rewards to the electors based on their contributions.

With this model, a consensus is achieved with less validating nodes and the network performance is improved. 

However, it could also reduce the degree of decentralization seeing as the network depends on fewer validating nodes. The validating nodes are in charge of operations of the blockchain. They define major governance parameters. 

How Staking Works

PoW blockchains involve mining in order to add more blocks. PoS, on the other hand, uses staking to create blocks. 

With staking, validators hold their coins so they can be picked randomly to produce a block. Participants holding more coins are more likely to be chosen as block validators. 

This way, blocks are created without depending on special mining hardware like ASICs. Great investment in hardware is necessary for ASIC mining while one has to invest in cryptocurrency for staking. So for the next block, one doesn’t have to compete with computational work. Instead, one stakes coins. Network security is maintained by using stake to incentivize validators.

Every PoS blockchain uses their own staking currency. Others, however, have a two-token system. They pay the rewards in a second token.

Calculating Staking Rewards

The method of calculating may vary from one network to another. Others depend on various factors and are changed on a block-by-block basis. Some of the factors include:

  • Inflation rate
  • Total coins staked on the network
  • The period of time that a validator has been staking actively
  • The number of coins a validator is staking
  • Other factors

Other networks determine the rewards using a fixed percentage. They then distribute the rewards to validators to compensate for inflation. With inflation, users tend to spend coins instead of staking them. This model, however, allows validators to calculate the staking reward that is in store for them.

Some people may prefer a reward schedule they can predict instead of relying on a probabilistic chance. 

A Staking Pool: What Is It?

It is a group formed by coin holders to merge their resources and raise their chances of receiving rewards and validating blocks.

A lot of time and know-how is required to create and maintain a staking pool. Staking pools are typically successful on networks with a high barrier of entry (financial or technical). A fee is usually charged from the staking reward by the pool providers. 

Individual stakers may enjoy added flexibility from the pools. The stake is normally locked for a set period. The protocol sets a withdrawal time. There is also a high minimum balance requirement for staking.

Pools don’t have a high minimum balance requirement and they don’t add additional withdrawal times. For new users, a staking pool makes more sense.

Cold Staking

This is defined as staking on an offline wallet, that is, one that is not connected to the internet. One can use a hardware wallet or an air-gapped software wallet. 

Users can stake while holding their coins securely offline. One should know that moving coins from cold storage will stop the rewards.

Cold staking is more suited for major stakeholders who would like to support the network while ensuring maximum security of their coins.

Staking on Binance

Holding coins on Binance is like having them in a staking pool. You enjoy numerous benefits without fees. You only need to hold your funds on Binance and everything else will be sorted out for you. The rewards are distributed at the beginning of every month. 

Closing Thoughts

PoS is ideal for anyone who is looking to be a part of the governance and consensus of blockchains and also earn passive income. 

One should know that staking has its risks such as bugs. 

Dogecoin: Everything You Need to Know About the Crypto

Dogecoin began as a joke. However, it has grown to become one of the most popular online currencies.

Many Dogecoin or DOGE fans buy and hold it until they can sell it at a huge profit.

But is that all? Is becoming rich with Dogecoin that simple?

You are about to find out.

History of Dogecoin

Bitcoin, the first cryptocurrency, was open source. Everyone was free to copy it—and people did. Clones like Peercoin and Litecoin popped up all over.

Dogecoin was created in 2013 by Jackson Palmer and Billy Markus. It is a copy of Litecoin which is very similar to Bitcoin.

People always refer to Dogecoin using silly language relating to the moon and dogs. (The coin features the Shiba Inu dog).

From the beginning, Dogecoin gained a devoted fanbase. Its fans are mainly people who like dogs and those who want to participate in crypto trading without being serious about it.

Most people don’t get it. One of Dogecoin founders, Palmer, even washed his hands. He said that the cryptocurrency market is overheated and that the crazy rise of Dogecoin was a clear indication of that. The Crypto market crashed several days after that statement.

Dogecoin, however, survived.

Is Dogecoin Technically Sound?

Not exactly. Dogecoin copied Litecoin which is technically sound.

One user can send and receive DOGE in a permissionless way on the cryptographically protected network.

It works but it is not as decentralized or as secure as Bitcoin—not even close.

Dogecoin is not innovative, it has never been from the beginning. Its block time may be shorter than Litecoin’s and its supply unlimited, unlike Bitcoin; but Dogecoin is not regularly updated. Sometimes it takes years for a new version to be launched.

Dogecoin is like Bitcoin’s carefree and silly cousin.

Elon Musk Loves Dogecoin

Elon Musk is a fan of silly stuff. So, his love for Dogecoin doesn’t come as a surprise. He tweets about the cryptocurrency occasionally on Twitter—which causes the price to rise dramatically.

In an interview, Musk said that it would be ironic and entertaining to see Dogecoin become Earth’s currency in the future.

But Musk seems to prefer Bitcoin when it comes to business. Tesla bought about $1.5 billion worth of Bitcoin recently.

Other celebrities like Gene Simmons and Snoop Dog have also endorsed Dogecoin.

Should You Buy Dogecoin? If Yes, How Do You Buy It?

Most major exchanges like Binance support Dogecoin.

DOGE works like any other online currency. You can transfer the coins to your wallet or keep them on the exchange.

Will Dogecoin Get to $1?

Dogecoin may have the support of rich celebrities and a dedicated fanbase but it is not technically interesting.

In a year, the price of Dogecoin has risen 13000% and its market cap is currently at $34.5 billion. Proponents seem positive that the coin will hit $1 one day. It is not impossible, but you also do not know how far the joke can go.

Tread carefully, especially if you are not a seasoned trader.

Cardano’s Upcoming Alonzo Update Pushes ADA Price

In a short period, Cardano (ADA) has made it to the list of top 10 online currencies by market capitalization. It is currently at number seven and has a market capitalization of more than $41 billion. It represents about 2% of the cryptocurrency market globally. It attained an all-time high ($1.5) on April 14, according to CoinGecko.

Charles Hokinson, co-founder of Ethereum blockchain and founder of Cardano leads the IOHK. He posted a video on his YouTube channel titled “Some Musings About the Roadmap”. In the video, he talked about Cardano’s roadmap over the coming four years.

He said that Cardano developers are busy trying to find a solution for the scalability issue as well as Cardano’s approach. However, he will start focusing on the issue when the Alonzo update is complete. After the Goguen update is done, the Cardano roadmap scalability phase will follow. The name of the phase is Basho, named after a Japanese haiku master of the 17th century.

The Deadalus and Alonzo Upgrade

The Deadalus update was released by Cardano on April 1. It marks the start of native tokens support on the blockchain and the Project Catalyst Fund3 voter registration. With this update began the countdown to the cryptocurrency becoming a totally decentralized blockchain.

The countdown has already reached its realization. A representative from the Cardano Foundation discussed the Deadalus update with Cointelegraph.

They said that a Deadalus user’s wallet can now be used as one unified interface to accept both ADA, in addition to many other tokens on the blockchain. They also talked about Cardano’s journey to becoming a decentralized blockchain.

According to Cardano, the decentralization event has put it on the map as one of the most decentralized blockchains globally. The next and last phase of Goguen is the Alonzo update. This upgrade is expected to provide smart contract functionality. The Plutus platform is responsible for enabling this upgrade’s development.

Additionally, Cardano developers have come up with a method of minting and selling NFT collectibles without the smart contract functionality.

ADA Could Hit $2 Because of DeFi Growth

Over the past 14 days, Cardano’s gains have grown nearly 10%. The important $2 mark is only $0.6 away. Given its current growth rate, the ADA will pass this $2 mark soon.

Something else that could promote growth is another DeFi summer. Going by the 2020 DeFi summer, the DeFi markets may reach new highs this year. As a matter of fact, ADA’s one-year gains are currently at 3,490.8%.

One expert believes that the Goguen phase’s final stages will introduce a number of existing DeFi trends onto the network. These include automated market makers as well as lending market.

With Cardano’s use cases and its Alonzo update, the cryptocurrency may well become an alternative platform to Ethereum. Ethereum has always been the king in the DeFi ecosystem. Cardano is choosing to take a positive approach as far as this narrative is concerned. They say they are more interested in offering world-class components and less interested in market share competition.

10 Best Cryptocurrencies to Invest in for 2021

Cryptocurrency is an online currency not regulated by a central system. It is instead based on blockchain technology. Bitcoin is currently the most popular cryptocurrency.

Digital currency is becoming more common on Wall Street and this has led to the availability of more options. Now, there are over 5,000 cryptocurrencies.

You can use digital currency to buy stuff; but for most people, it is a long-term investment.

Cryptocurrency investing can be risky, especially if you don’t have enough information.

So here are the 10 best cryptocurrencies that you can invest in.

How the Top 10 Cryptocurrencies Were Picked


Has the cryptocurrency been around for long? This is not to say that new digital currencies are bad. But historical data helps you analyze the performance.

Track Record

The performance of the company over the years is important. If the prices have had some stability, that’s good. A promising currency is one that is gaining value over time.


Is the platform usable and secure? Transactions should be handled smoothly.

You also don’t want to lose your investment because of an insecure platform.

Adoption Rate

A high adoption level usually means that the digital currency has great liquidity. It will be easier to spend, sell or trade in the future.

The Top 10 Cryptocurrency Investments in 2021

1. Bitcoin (BTC)

Bitcoin is the oldest cryptocurrency. Its volume, market cap and price are higher than those of the other options. It represents 40 percent of the market cap.


Bitcoin fluctuates a lot. It is also quite expensive for people who want to purchase whole shares.

2. Ethereum (ETH)

Ethereum is both a cryptocurrency and a network, making it unique. It may be cheaper than Bitcoin but it is well ahead of the other online currencies.


Transactions can take long to process.

3. Binance Coin

Binance has grown slowly but consistently. This has made it a stable investment option with fewer risks.


Many people are skeptical when it comes to security.

4. Tether (USDT)

Tether is extremely stable because it is connected to the US dollar.


There have been doubts about the actual reserve stock.

5. Cardano

Investors love Cardano because transactions are cheaper and faster. It has also proven to be quite secure.


The low adoption rate makes investors hesitant.

6. Polkadot (DOT)

The creators of Polkadot are former Ethereum leaders. They wanted to create an online currency with a much better network.


Polkadot has a short history so it’s hard to assess its track record.

7. Ripple (XRP)

Ripple offers international transactions and the transactions only take seconds.


The growth rate is not that impressive.

8. Litecoin

Litecoin completes transactions much faster than Bitcoin. If the fast transaction rate continues, it could grow dramatically.


It is closely tied to Bitcoin so its value fluctuates a lot.

9. Chainlink

This cryptocurrency has an appealing price and it is easily accessible. It has also shown promise when it comes to growth.


Its low market cap doesn’t make it attractive.

10. Stellar (XLM)

This cryptocurrency acts as a bridge between blockchain networks and banks. It serves a niche need.


If it faces stiff competition its value could drop.